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Amazon Logistics

Nikki1

New Member
Hello Everyone,

I am new to this so any help, suggestions and guidance will be appreciated.

I was looking into becoming a contractor for Amazon Logistics and I am stuck at route biding process. I was wondering if anyone here has a family/friends or themselves have any knowledge on the biding process. I will appreciate any help in this matter.

  • Description
    Standard packages using a vehicle
  • Address
    Philadelphia, PA 19137-1941

  • SERVICE AVERAGES
    • 10.5 hrs per route
    • 75 miles per route
    • Small packages (50 lbs. max)
  • REQUIREMENTS
    • Dry cargo van with 230 cubic feet of cargo space
    • Onsite dispatcher
    • Uniformed messengers
    • 7/365 day operation
    • 1 shift per day
  • RATE CONSIDERATIONS
    • Inclusive of fuel, vehicle, maintenance, insurance, and dispatcher expenses
 

Nikki1

New Member
  • Thread Starter Thread Starter
  • #2
Can someone help me with Amazon Logistics biding process? Can you please PM me?
 

Bygosh

Active Member
Looks like you are looking at the white van contracting. You are going to need 20+ vans for that.
 

Nikki1

New Member
  • Thread Starter Thread Starter
  • #5
Bygosh, I have been reading your post and I tried to PM you, but I am unable to message you since I need 1% likes on my post and I have to be signed up for at least 2 days.

When I initially signed up it said I need 5+, we have the funds to support 5 to 10 vans. Would you able to share your contact info with me so I can get some advice on biding process. I don't know how much should we bid per route?
 

Nikki1

New Member
  • Thread Starter Thread Starter
  • #8
Are you paying for consulting expertise? Or you expect strangers on the internet to just do all the work to start your business for free?
I am sorry jester121 I am not asking any stranger to do the work just so I could start a business. I was asking for advice so I have some data and feedback before I can move forward with this project. There are plenty of other post where people who are new to Amazon Logistics are seeking help or guidance and that's exactly what I am doing.
 

Nikki1

New Member
  • Thread Starter Thread Starter
  • #10
I feel sorry for you jester121, but please don't attack someone who is trying to make their life better.

First of all I haven't even started anything. I was just curious and was looking into this so I wanted to learn more about it. I also have kids and I work very very hard to earn my living. I have been very smart with my money, living very simple and frugal life, working 4 jobs. Saved up enough to have my own business and now was now looking into Amazon Logistics. I already said I am new to this so how did I take food out of anyone's mouth.
 
oh brother....go pay for consulting expertise. You would be very pleased as to what they can give you. VS your competitors here.

This isn't something you want to be a cheap ass about.
 

dkcs

Well-Known Member
The question you need to ask yourself is do I have the capital available to start this as a legitimate business? You need a fleet of vans that meet Amazon's requirements along with the capital needed to pay for the liability and workers comp insurance. Driver training (required by Amazon) is also another area you need to look into.

You also need to budget for payroll including an onsite dispatcher who won't be out delivering packages (generating revenue). I know Amazon states at least 5+ vans are required but that doesn't mean you will snag a contract with that small of a fleet when your competitors are running 20-50 vans.

Amazon can also pull your contract any time they choose to do so or when a competitor outbids you for a route.

Do you have the capital to survive all of this? And if the answer is yes then you should really be hiring a consultant to pull it all together for you before you risk that kind of money.
 

oicu812

Well-Known Member
Amazon can also pull your contract any time they choose to do so or when a competitor outbids you for a route.
Nice try but wrong. They can cancel the contract if your company fails to meet Amazon's expectations. All those info (too many return packages, too many concessions, etc) are provided to each logistics company and most likely written into the contracts. Other logistics companies at the same station or new additional companies do not bid for the same routes. They just bid for routes. Thus at some stations, there is less and less flex morning blocks and more and more logistics vans.

Hello Everyone,

I am new to this so any help, suggestions and guidance will be appreciated.

I was looking into becoming a contractor for Amazon Logistics and I am stuck at route biding process. I was wondering if anyone here has a family/friends or themselves have any knowledge on the biding process. I will appreciate any help in this matter.

  • Description
    Standard packages using a vehicle
  • Address
    Philadelphia, PA 19137-1941

  • SERVICE AVERAGES
    • 10.5 hrs per route
    • 75 miles per route
    • Small packages (50 lbs. max)
  • REQUIREMENTS
    • Dry cargo van with 230 cubic feet of cargo space
    • Onsite dispatcher
    • Uniformed messengers
    • 7/365 day operation
    • 1 shift per day
  • RATE CONSIDERATIONS
    • Inclusive of fuel, vehicle, maintenance, insurance, and dispatcher expenses

Vans that fit the requirements are Dodge/MB Sprinters, Dodge Promaster, Ford Transit 150. I think there's a minimum that the logistics company must own and the rest can be leased.

You will need a minimum of 2 dispatchers that can cover the 7 days/365 days as they will need to work from 4:30AM to 8pm or later.. You can also have drivers that dispatches.

You will be bidding per route and you should calculate it based on cost/package delivered. Flex is costing Amazon around $1.50/pkg delivered (daytime routes). And Flex is by far cheaper for Amazon to use to deliver packages. As a logistics company, your bid has to be well over the cost of Flex to make a profit.

In the LA area, logistics companies probably deliver 2-300 packages per route. You can base the bids based on the volume in your location for the 10.5 hrs

There are lots of other info you need to know and you should find a logistics consultant.
 
Last edited:

Nikki1

New Member
  • Thread Starter Thread Starter
  • #14
Nice try but wrong. They can cancel the contract if your company fails to meet Amazon's expectations. All those info (too many return packages, too many concessions, etc) are provided to each logistics company and most likely written into the contracts. Other logistics companies at the same station or new additional companies do not bid for the same routes. They just bid for routes. Thus at some stations, there is less and less flex morning blocks and more and more logistics vans.


OICU812, thank you so much for the information. I tried to search Logistics Consultant and nothing is coming up accept "forums" Should I go to Chamber of Commerce or SBA to find a Logistics Consultant?


Vans that fit the requirements are Dodge/MB Sprinters, Dodge Promaster, Ford Transit 150. I think there's a minimum that the logistics company must own and the rest can be leased.

You will need a minimum of 2 dispatchers that can cover the 7 days/365 days as they will need to work from 4:30AM to 8pm or later.. You can also have drivers that dispatches.

You will be bidding per route and you should calculate it based on cost/package delivered. Flex is costing Amazon around $1.50/pkg delivered (daytime routes). And Flex is by far cheaper for Amazon to use to deliver packages. As a logistics company, your bid has to be well over the cost of Flex to make a profit.

In the LA area, logistics companies probably deliver 2-300 packages per route. You can base the bids based on the volume in your location for the 10.5 hrs

There are lots of other info you need to know and you should find a logistics consultant.
The question you need to ask yourself is do I have the capital available to start this as a legitimate business? You need a fleet of vans that meet Amazon's requirements along with the capital needed to pay for the liability and workers comp insurance. Driver training (required by Amazon) is also another area you need to look into.

You also need to budget for payroll including an onsite dispatcher who won't be out delivering packages (generating revenue). I know Amazon states at least 5+ vans are required but that doesn't mean you will snag a contract with that small of a fleet when your competitors are running 20-50 vans.

Amazon can also pull your contract any time they choose to do so or when a competitor outbids you for a route.

Do you have the capital to survive all of this? And if the answer is yes then you should really be hiring a consultant to pull it all together for you before you risk that kind of money.

Thank you DKCS and OICS812, this helped me a lot. Yes my husband I own other business (Edible Arrangements and Motel) but this is something new we wanted to try. So we do have the capital but I wanted to gain little bit more knowledge before jumping all in and all the info you guys provided help me understand the very basics. I will try and search Logistics Consultant in my area and see if I can get more information.
 

oicu812

Well-Known Member
As for driver training, ideally you would've hired someone that has already done logistics for another company for Amazon. You can use that driver to train new drivers as ridealongs.

Amazon provides equipment such as rabbits (scanners) and chargers/docks that the drivers need. I don't think you would need to purchase those yourself. Uniforms are a requirement but I'm not sure who picks up the cost as Amazon has a logisitics store website that you order from.

Before you start, you should go on a ridealong with another company delivering for Amazon in your area to get an idea what the drivers face and may need from you (dispatcher).
 
Last edited:

Nikki1

New Member
  • Thread Starter Thread Starter
  • #18
As for driver training, ideally you would've hired someone that has already done logistics for another company for Amazon. You can use that driver to train new drivers as ridealongs.

Amazon provides equipment such as rabbits (scanners) and chargers/docks that the drivers need. I don't think you would need to purchase those yourself. Uniforms are a requirement but I'm not sure who picks up the cost as Amazon has a logisitics store website that you order from.

Before you start, you should go on a ridealong with another company delivering for Amazon in your area to get an idea what the drivers face and may need from you (dispatcher).

I don't if anyone would want to help their competitor (even though I guess there would be lot of work for everyone). As far as consultant, the only thing I was able to find as far as logistics was 3PL consultant and it didn't take me far. I am still doing more search but does someone know any consulting company who can provide what I am looking for?

OICU812, you know so much about Amazon Logistics, do you know anyone who has start-up with Amazon?
 

oicu812

Well-Known Member
Other logistics companies aren't really your competitors. New logistics companies start at the bottom at the pick of routes/areas. They may not help you with bids and such, but doing ridealongs, they wouldn't really care as you will be helping one of their drivers with their routes as you learn a routine.
 

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